Do you think that kid fishing from the moon in the DreamWorks logo owns a Nintendo Game Boy Advance? He certainly does now, because Shrek, Shrek 2, and Shark Tale will soon debut on MajescoEntertainment's (NASDAQ:COOL) Game Boy Advance Video platform.

According to a press release, DreamWorks Animation (NYSE:DWA) will license its big guns to Majesco. The game company's Game Boy Advance Video uses proprietary technology to fit actual video onto the portable system's tiny cartridges. Until now, television cartoons have composed most of Majesco's portfolio of videos, including Disney's (NYSE:DIS) Kim Possible and programs such as SpongeBob SquarePants and Rugrats from Viacom's (NYSE:VIA) Nickelodeon. Each of those video cartridges carried only a few episodes.

The equation has now changed. I was wondering how long it would take, especially considering the ability of Sony's (NYSE:SNE) PlayStation Portable to play movies. When PSP users can watch crystal clear copies of National Treasure and Spider-Man in the palms of their hands, short bursts of TV toons tend to look a bit flat. Now that Game Boy and Nintendo DS owners can watch full-length features such as Shark Tale, Nintendo truly has leverage to highlight the value of its handheld devices over Sony's. A Nintendo of America executive said "Nintendo is thrilled" at this agreement, and you can believe him. Sony's PSP has become a serious threat to Nintendo's dominance in the handheld-gaming business.

The deal may also offer DreamWorks Animation another market to compensate for all the unsoldShrek2 DVDs whose return hurt the company's earnings prospects. That might be optimistic, but DreamWorks will certainly welcome whatever revenues it can gain from the handheld audience.

Since Game Boy Advance Video has thus far concentrated on animated fare, Sony retains an advantage. Nevertheless, the introduction of films like the Shrek series should help Majesco expand this particular franchise beyond the three million units already sold. Majesco, like DreamWorks Animation, needs a boost right now -- check out W.D. Crotty's recent coverage of how the company's equity cratered because of some bad guidance.

Who knows? Maybe someday we'll see Finding Nemo or other titles from Motley Fool Stock Advisor pick Pixar (NASDAQ:PIXR) alongside DreamWorks Animation productions on the little cartridges. Pixar has also had its challenges with DVD sales as of late, so it might be willing to explore additional formats as well.

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Fool contributor Steven Mallas owns shares of Disney. The Fool has a disclosure policy.